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A Note on Green Taxes and Double Dividends

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  • Lars Hakonsen
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    Abstract

    Two highly influential articlesin the literature on green taxes and double dividends are Bovenbergand de Mooij (1994) and Goulder (1995). Goulder's primary concernis whether or not green tax reforms may increase welfare definedexclusive of environmental quality, while Bovenberg and de Mooijprimarily focus on the employment effects of such reforms. Unfortunately,Goulder misinterprets Bovenberg and de Mooij's results in takingthe sign of the uncompensated wage elasticity of labour supplyas being the decisive factor for whether or not welfare exclusiveof environmental quality rises under a green tax reform. Thiserror is pointed out and corrected in this note. Copyright Kluwer Academic Publishers 2001

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    File URL: http://hdl.handle.net/10.1023/A:1008793500470
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    Bibliographic Info

    Article provided by Springer in its journal International Tax and Public Finance.

    Volume (Year): 8 (2001)
    Issue (Month): 1 (January)
    Pages: 75-80

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    Handle: RePEc:kap:itaxpf:v:8:y:2001:i:1:p:75-80

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    Web page: http://www.springerlink.com/link.asp?id=102915

    Related research

    Keywords: negative externalities; double dividend; green tax reform;

    References

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    1. Parry Ian W. H., 1995. "Pollution Taxes and Revenue Recycling," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S64-S77, November.
    2. Bovenberg, A Lans & van der Ploeg, Frederick, 1992. "Environmental Policy, Public Finance and the Labour Market in a Second-best World," CEPR Discussion Papers 745, C.E.P.R. Discussion Papers.
    3. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer, vol. 2(2), pages 157-183, August.
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    Cited by:
    1. Giménez, Eduardo L. & Rodríguez, Miguel, 2010. "Reevaluating the first and the second dividends of environmental tax reforms," Energy Policy, Elsevier, vol. 38(11), pages 6654-6661, November.
    2. Eduardo L. Giménez Fernández & Miguel Rodríguez Méndez, 2006. "Pigou's Dividend versus Ramsey's Dividend in the Double Dividend Literature," Economic Working Papers at Centro de Estudios Andaluces E2006/08, Centro de Estudios Andaluces.

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